Though it offers a pair of full-size electric vehicles – the Ford E-Transit and Ford F-150 Lightning – FoMoCo CEO Jim Farley has long made it clear that he views larger, heavier EVs as being better suited for the commercial fleet side of the business, and not its retail counterpart. Much of this stems from the fact that current battery technology makes it difficult to build larger EVs with copious amounts of range without straddling them with expensive, huge battery packs. However, pricing is also apparently a limiting factor in that regard, too.
“We’re not guessing anymore. And that was super capital efficient. Literally, we did it on $0.30 on the dollar, compared to what Ford would develop the same platform,” Farley said during the recent Wolfe Research Auto, Auto Tech, and Semiconductor Conference. “And I think that will give us a huge benefit, because we believe that EV demand is still out there, that there is a very underserved group of people on the super affordable, where actually running an EV is cheaper than an ICE product. But these very large EVs that cost $50,000, $60,000, $70,000, we don’t believe in. We think EREV or hybrid is a much better, more profitable investment in our capital.”
These comments coincide with a few Ford executives have offered on this particular topic as of late. Back in April 2024, vice chair John Lawler said that Ford’s large EVs would “be very limited in the scope,” after which Farley added that larger retail-oriented EVs aren’t viable, either. Farley later added that he thinks the sweet spot for retail consumers are small all-electric pickups and SUVs, too.
Farley’s words have also been backed up by some recent strategy shifts coming from the automaker itself. Last August, Ford canceled plans to build a pair of all-electric three-row SUVs and will instead launch two hybrids, and the company is also working on some extended-range electric vehicles (EREVs) – though they’re roughly two years away from becoming a reality.
Comments
Amazing how much time and money have been lost because common sense is no longer common.
Better work on that hybrid reliability, Jim. The Escape and Explorer hybrids have awful ones and their resales are tanking.
You are correct sir, Ford’s hybrids have terrible reliability and resale.
“We think EREV or hybrid is a much better, more profitable investment in our capital.” All Mr. Farley had to do was read TFA comments years ago, and he could have saved himself a lot of time and money and headache.
He works for a “family” company. Likely has little or no true decision making authority. If it’s not a pick-up truck, Ford is poorly skilled to succeed.
I like Jim mostly because the V8 Mustang being around still. Although, this is common sense. EVs make sense to be cheap and city based.
Leave truck and car enthusiast products alone.
Is Jim Farley just realizing this ? He is definitely not a Lee Iacocca ! Farley is in way over his head . He has hurt Ford Motor Company.
Currently in China there are cars with LFP charging in 10 minutes. That makes them no different than gas, maybe a little time but not much. Its odd that Ford has not focused on just making their cars more reliable and efficient while perfecting their current EV’s. It seems like a company fighting amongst itself. There is no reason they can’t go on making a Gas truck for now. No one should beat up on the EV’s, as long as they are good, as they server a purpose as well. I like the MachE but its charge speed has quickly become old.
Maybe the big problem is old companies like Ford think you can just make one and not improve it for years without loosing market share.
All his talk about smaller EVs, so where are they? He has one car to sell and it’s ancient technology, too expensive, and too big. Meanwhile he builds the Capri and Puma in Europe..Maybe he’s stalling until the battery plant come online.
Looking at sales numbers, I think the ICE Mustang is not looking too viable either….
“Ford CEO Jim Farley Says Large EVs Over $50K Aren’t Viable”
Might want to look into EV9 sales Jimbo. They’re winning awards and crushing it
Selling 1300 or so a month isn’t exactly spectacular. Even the Mach E is still selling twice that.
In the overall big picture, they are both almost irrelevant.
I’ve been selling for 30 years now. 20 years with Ford and Lincoln. 10 years with Cadillac now. What i know is that manufacturers are insolated in bubbles. They don’t know customer sentiment. Ford tried to go electric with a work van and a 100k truck. Cadillac came with a $62k offering in the Lyriq. It is selling very well. The Mach e is a nice first. Ford should’ve shot for an EV with the Edge, the Nautilus and the Escape. Hybrid is not the future. EV is. China is proving the world wrong. It’s entries in the market just took over the sales Crown in Europe from Tesla. Ford, for the first time is out of touch. They could make a Fusion EV and it would probably sell out. Europe is finding out that customers will buy EV’s if given the opportunity. China is proving it with BYD.